German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — HOVDE Group Financial Services Conference 2023
23 slides from German American Bancorp's conference presentation, Nov 1, 2023
Slide 1: HOVDE Group Financial Services Conference
Symbol: GABC November 2-3, 2023 HOVDE Group Financial Services Conference German American 1
Slide 2: Presented By
Presented By D. Neil Dauby, Chairman and Chief Executive Officer (812) 482-0707 neil.dauby@germanamerican.com Bradley M. Rust, President and CFO (812) 482-0718 brad.rust@germanamerican.com 2
Slide 3: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS When used in this presentation and our oral statements, the words or phrases “believe,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “fo
Slide 4: Who We Are
Who We Are Indiana & Kentucky Community-focused Financial Services Organization • Banking, Insurance, Investments & Trust • $6.0 Billion Total Banking Assets • $2.8 Billion Investment and Trust Assets Under Management • $74 Million Annual Insurance Premiums • ~ 900 Team Members • 76 Banking Offices
Slide 5: History of Superior Financial Performance
History of Superior Financial Performance Eleven Consecutive Years of Increased Dividends Twelve of the Past Thirteen Years of Improved Earnings Performance Double-Digit Return on Equity for 18 Consecutive Fiscal Years Raymond James 2012-2017 and 2019-2021 Community Bankers Cup Recipient K
Slide 6: Financial Trends
FINANCIAL TRENDS 6
Slide 7: Total Assets and Return on Average Assets
$3,929 $4,398 $4,978 $5,609 $6,156 $6,006 1.38% 1.43% 1.32% 1.57% 1.26% 1.42% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/23 (dollars in millions, except per share amount) Return on Average Assets * 2022 was impacted by acquisition-related e
Slide 8: Total Loans, Net of Unearned Income
$2,728 $3,077 $3,088 $3,004 $3,785 $3,888 78% 80% 82% 81% 81% 81% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/23 Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans (dollars in millions) 8
Slide 9: Loan Portfolio Composition
Construction & Development Loans $ 304.5 million 8% Agricultural Loans $ 407.7 million 11% Commercial & Industrial Loans $ 621.7 million 16% Commerical Real Estate Owner Occupied $ 517.5 million 13% Commercial Real Estate Non- Owner Occupied $ 970.8 million 25% Multi-Family Residential Properties $
Slide 10: Non-Performing Assets to Total Assets
0.34% 0.33% 0.44% 0.26% 0.23% 0.21% 0.45% 0.45% 0.52% 0.34% 0.29% 0.30% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/23 Non-Performing Assets to Total Assets GABC Peer Group *Peer Group (St. Louis Federal Reserve District BHC with Total Assets between $3 and
Slide 11: Total Deposits
$3,073 $3,430 $4,107 $4,744 $5,350 $5,136 81% 82% 88% 93% 92% 86% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/23 Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits (dollars in millions) 11
Slide 12: Total Deposit Composition
Non-Interest Bearing Demand $1,502 million 29% Interest Bearing Demand, Savings & Money Market $2,932 million 57% Time Deposits > $100,000 $432 million 9% Time Deposits < $100,000 $270 million 5% Total Deposit Composition as of 9/30/23 Total Deposits: $5,136 million21% of Total Deposits are Uninsure
Slide 13: Deposit Composition by Customer Type
Commercial $1,565 million 30% Public Fund $1,126 million 22% Retail $2,445 million 48% Total Deposit Composition as of 9/30/23 Total Deposits: $5,136 million 13 Deposit Composition at end of period 9/30/23 6/30/23 12/31/22 12/31/19 Commercial 30% 29% 31% 23% Public Fund 22% 23% 18% 20% Retail 48% 48
Slide 14: Shareholders' Equity and Return on Average Tangible Equity
$459 $574 $625 $668 $558 $538 14.82% 14.98% 13.46% 16.38% 19.51% 21.21% $- $100 $200 $300 $400 $500 $600 $700 $800 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/23 Total Shareholders' Equity Return on Average Tangible Equity * 2022 was impacted by acquisition-related expenses and the Day 1 prov
Slide 15: Net Interest Income and Net Interest Margin
$114,610 $145,225 $155,243 $160,830 $200,584 $148,203 $144,826 3.75% 3.92% 3.63% 3.31% 3.45% 3.35% 3.63% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/22 09/30/23 Net Interest Income Net Interest Margin (Tax-Equiva
Slide 16: Non-Interest Income
$37,070 $45,501 $54,474 $59,462 $59,133 $45,465 $44,667 24% 24% 26% 27% 23% 23% 24% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/22 09/30/23 Total Non-Interest Income Non-Interest Income as % of Total Revenue (dollars in thousands) 16
Slide 17: Non-Interest Income Composition
Net Gains on Sales of Loans $1.8 mill ion 4% Net Gains on Sales of Secuities $0.1 mill ion 0% Wealth Management $8.5 mill ion 19% Service Charges on Deposit Accounts $8.7 mill ion 20% Insurance Revenues $7.3 mill ion 16% Interchange Fee Income $13.1 mill ion 29% Other Operating Income $5.2 mill ion
Slide 18: Non-Interest Expense and Efficiency Ratio
$93,553 $114,162 $117,123 $124,007 $154,191 $118,577 $108,763 59.7% 57.4% 54.3% 54.4% 56.6% 58.4% 54.8% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/22 09/30/23 Non-Interest Expense Efficiency Ratio * 2022 was impa
Slide 19: Net Income and Earnings Per Share
$46,529 $59,222 $62,210 $84,137 $81,825 $57,410 $64,381 $1.99 $2.29 $2.34 $3.17 $2.78 $1.95 $2.18 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 09/30/22 09/30/23 Net Income & Earnings Per Share Earnings Per Share * 20
Slide 20: Why Invest in GABC? Earnings Per Share Growth
$1.32 $1.43 $1.51 $1.57 $1.77 $1.99 $2.29 $2.34 $3.17 $2.78 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Why Invest in GABC? GABC Earnings Per Share Growth As of 12/31 for years shown * Earnings Per Share adjusted for 3-for-2 stock split completed in 2017 ** 2022 was impacted by acquisition-rel
Slide 21: Why Invest in GABC? Dividends Per Share Growth
$0.40 $0.43 $0.45 $0.48 $0.52 $0.60 $0.68 $0.76 $0.84 $0.92 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Why Invest in GABC? *Dividends per share adjusted for 3-for-2 stock split completed in 2017 As of 12/31 for years shown * * * * GABC Dividends Per Share Growth 21
Slide 22: Why Invest in GABC?
Why Invest in GABC? • Proven Executive Management Team • Track Record of Consistent Top Quartile Financial Performance • Experienced in Operating Plan Execution and M & A Transitions • Organic Growth Opportunities within New Market Areas – Small MSA and Large Major Metro • Existing Platform for Cont
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